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Chapter 4
Managing Marketing Information to Gain Customer Insights
GENERAL CONTENT: Multiple-Choice Questions
1. Despite the data glut that marketing managers receive, they frequently complain that
they lack ________.
a. enough information of the right kind
b. quality information
c. timely information
d. accurate and reliable information
e. valid information
(a; p. 97; Easy) {AACSB: Communication}
2. Which of the following statements is not true regarding information collected by
marketers?
a. Managers lack information of the right kind.
b. Most managers do not need more information.
c. Most managers need better information.
d. Many managers are burdened by data overload.
e. Managers have the right information and they have enough of it.
(e; p. 97; Easy) {AACSB: Communication}
3. A marketing information system (MIS) consists of people and procedures to assess
information needs, ________, and help decision makers analyze and use the
information.
a. experiment to develop information
b. test market the information
c. develop the needed information
d. critique the needed information
e. compare the needed information
(c; p. 97; Easy) {AACSB: Communication}
4. The real value of a company’s marketing research and information system lies in the
________.
a. amount of data it generates
b. variety of contact methods it uses
c. efficiency with which it completes studies
d. quality of customer insights it provides
e. marketing information system it follows
(d; p. 97; Moderate) {AACSB: Communication}
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5. The marketing information system can serve ________.
a. the company’s marketing managers
b. suppliers
c. resellers
d. marketing services agencies
e. all of the above
(e; p. 98; Moderate)
6. A good MIS balances the information users would ________ against what they really
________ and what is ________.
a. need; like; feasible
b. like; can afford; needed
c. like to have; need; feasible to offer
d. need; can afford; useful
e. use; have to use; available
(c; p. 98; Moderate) {AACSB: Communication}
7. Marketers must weigh carefully the costs of additional information against the
________ resulting from it.
a. uses
b. benefits
c. knowledge
d. rewards
e. cost
(b; p. 99; Easy)
8. Four common sources of internal data supplied to internal databases include the
accounting department, operations, the sales force, and the _____.
a. owners
b. stockholders
c. marketing department
d. custodians
e. quality control department
(c; p. 99; Moderate) {AACSB: Communication}
9. Marketing information from which type of database usually can be accessed more
quickly and cheaply than other information sources?
a. external
b. LexisNexis
c. DataStar
d. internal
e. ProQuest
(d; p. 100; Easy) {Use of IT}
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10. _____ is the systematic collection and analysis of publicly available information
about consumers, competitors, and developments in the marketing environment.
a. Marketing data
b. Marketing intelligence
c. Web Master
d. Sales and sales management
e. Secondary data
(b; p. 100; Easy)
11. Which of the following statements regarding marketing intelligence is true?
a. Marketing intelligence is privately held information.
b. The advantage of using competitive intelligence is negligible.
c. All marketing intelligence is free.
d. Marketing intelligence is publicly available information.
e. Marketing intelligence gathering is more focused on gaining insights into
consumer activities than competitors’ activities.
(d; p. 100; Moderate)
12. Which of the following is not considered a source of marketing intelligence?
a. suppliers
b. resellers
c. key customers
d. causal research
e. activities of competitors
(d; p. 100; Moderate)
13. Which of the following is not a potential source for marketing intelligence?
a. competitors’ garbage
b. buying competitors’ products
c. monitoring competitors’ sales
d. primary data
e. purchasing agents
(d; p. 100; Moderate)
14. Through which of these sources of information is a competitor least likely to reveal
intelligence information?
a. annual reports
b. trade show exhibits
c. Web pages
d. press releases
e. internal marketing meetings
(e; p. 101; Easy) {AACSB: Communication}
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15. Which of the following is an example of a free online database that a company could
access in order to develop marketing intelligence?
a. LexisNexis
b. ProQuest
c. Dow Jones News Retrieval
d. U.S. Security and Exchange Commission’s database
e. DataStar
(d; p. 101; Moderate) {AACSB: Use of IT}
16. To combat marketing intelligence efforts by competitors, Unilever Corporation is
now providing ________ to employees.
a. competitive intelligence training
b. privacy blocks
c. protection
d. less information
e. a code of ethics
(a; p. 101; Moderate)
17. _____ is the systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing an organization.
a. The marketing information system
b. Marketing research
c. Exploratory research
d. Observational research
e. Causal research
(b; p. 102; Easy)
18. What is the first step in the marketing research process?
a. developing a marketing information system
b. defining the problem and research objectives
c. developing the research plan for collecting information
d. implementing the research plan
e. interpreting data and deciding on type of research
(b; p. 102; Moderate)
19. Which of the steps in the marketing research process has been left out of the
following list: defining the problems and research objectives, implementing the
research plan, and interpreting and reporting the findings?
a. developing the research budget
b. choosing the research agency
c. choosing the research method
d. developing the research plan
e. comparing and contrasting primary and secondary data
(d; p. 102; Moderate)
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20. Causal research is used to ________.
a. test hypotheses about cause-and-effect relationships
b. gather preliminary information that will help define problems
c. find information at the outset in an unstructured way
d. describe marketing problems or situations
e. quantify observations that produce insights unobtainable through other forms of
research
(a; p. 102; Easy)
21. Managers often start with ________ research and later follow with ________
research.
a. exploratory; causal
b. descriptive; causal
c. descriptive; exploratory
d. causal; descriptive
e. causal; exploratory
(b; p. 102; Challenging)
22. Your colleague is confused about using the marketing research process, as he knows
that something is wrong but is not sure of the specific causes to investigate. He seems
to be having problems with ________, which is often the hardest step to take.
a. developing the research plan
b. determining a research approach
c. defining the problem and research objectives
d. selecting a research agency to help
e. C and D
(c; p. 102; Moderate)
23. The objective of ________ research is to gather preliminary information that will help
define the problem and suggest hypotheses.
a. descriptive
b. exploratory
c. causal
d. corrective
e. descriptive and exploratory
(b; p. 102; Moderate) {AACSB: Communication}
24. In the second step of the marketing research process, research objectives should be
translated into specific ________.
a. marketing goals
b. information needs
c. dollar amounts
d. results that justify the means
e. time allotments
(b; p. 102; Moderate)
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25. A plan for primary data collection spells out the specific research approaches, contact
methods, ________, and instruments that researchers will use to gather data.
a. personnel
b. sampling plans
c. budget requirements
d. all of the above
e. none of the above
(b; p. 105; Moderate) {AACSB: Communication}
26. Secondary data consists of information ________.
a. that already exists somewhere and is outdated
b. that does not currently exist in an organized form
c. that already exists somewhere and was collected for another purpose
d. used by competitors
e. that the researcher can obtain through surveys and observation
(c; p. 103; Easy) {AACSB: Communication}
27. Information collected from online databases on the Internet is an example of
________ data.
a. primary
b. secondary
c. observational
d. experimental
e. ethnographic
(b; p. 103; Moderate) {AACSB: Use of IT}
28. Which form of data below can usually be obtained more quickly and at a lower cost
than the others?
a. primary
b. survey research
c. secondary
d. syndicated
e. online marketing research
(c; p. 104; Moderate) {AACSB: Analytic Thinking}
29. Secondary data are ________.
a. collected mostly via surveys
b. expensive to obtain
c. sometimes not accurate
d. never purchased from outside suppliers
e. always necessary to support or refute the primary data collected
(c; p. 105; Moderate)
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30. Your assistant wants to use secondary data exclusively for the current research
project. You advise him that the use of secondary data has some potential problems.
Which of the following is not one of them?
a. It may not exist.
b. It may not be relevant
c. It may not be useable.
d. It is generally more expensive to obtain than primary data
e. It may not be current.
(d; p. 104; Moderate)
31. For primary data to be useful to marketers, it must be relevant, current, unbiased, and
________.
a. complete
b. accurate
c. inexpensive
d. collected before secondary data
e. valid
(b; p. 105; Moderate)
32. Which method could a marketing researcher use to obtain information that people are
unwilling or unable to provide?
a. observational research
b. focus groups
c. personal interviews
d. Internet surveys
e. questionnaires
(a; p. 106; Easy) {AACSB: Communication}
33. Ethnographic research ________.
a. comes from traditional focus groups
b. is gathered where people live and work
c. provides secondary data
d. is most popular in the service sector
e. provides data to marketers when observation is impossible
(b; p. 106; Moderate) {AACSB: Communication}
34. Survey research, though used to obtain many kinds of information in a variety of
situations, is best suited for gathering ________ information.
a. personal
b. preference
c. attitudinal
d. descriptive
e. exploratory
(d; p. 106; Moderate) {AACSB: Communication}
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35. Fredia Pellerano has just discovered the major advantage of survey research. She
reports to her supervisor that the advantage is its ________.
a. flexibility
b. cost effectiveness
c. quickness to administer
d. understandability
e. simplicity
(a; p. 106; Moderate)
36. Survey research is least likely to be conducted through which of the following?
a. the Web
b. the mail
c. the telephone
d. observation
e. person-to-person interactions
(d; p. 106; Easy) {AACSB: Communication}
37. Experimental research is best suited for gathering ________ information.
a. unknown
b. causal
c. behavioral
d. interactive
e. descriptive
(b; p. 107; Moderate) {AACSB: Communication}
38. Which of the following contact methods has the poorest response rate?
a. mail
b. telephone
c. personal
d. observation
e. online
(a; p. 107; Moderate) {AACSB: Analytic Thinking}
39. Which of the following is not a disadvantage of telephone interviews?
a. They are more expensive to conduct than mail questionnaires.
b. Interviewer bias is introduced.
c. Under time pressures, some interviewers might cheat.
d. Interviewers tend to interpret answers similarly.
e. Potential respondents may refuse to participate.
(d; p. 107; Moderate) {AACSB: Communication}
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40. Which of the following contact methods is generally the least flexible?
a. telephone interviewing
b. personal interviewing
c. mail questionnaires
d. online questionnaires
e. online panels
(c; p. 107; Moderate) {AACSB: Analytic Thinking}
41. Which form of marketing research is flexible, allows for explanation of difficult
questions, and lends itself to showing products and advertisements?
a. personal interviewing
b. online interviewing
c. phone interviewing
d. ethnographic research
e. observational research
(a; p. 108; Easy) {AACSB: Communication}
42. Focus group interviewing has become one of the major marketing research tools for
getting insight into consumer thoughts and feelings. However, if the sample size is
small, it may be difficult to ________.
a. find a representative sample
b. generalize from the results
c. administer the questions
d. orchestrate cooperation
e. find enough secondary data to support the findings
(b; p. 108; Moderate) {AACSB: Communication}
43. Which of the following is a disadvantage of online focus groups?
a. Participants must be in a central location.
b. The Internet format can restrict respondents’ expressiveness.
c. Results take longer to tabulate and analyze.
d. The cost of online focus groups is greater than that of most other qualitative
research methods.
e. The format of focus groups can be varied.
(b; p. 110; Moderate) {AACSB: Use of IT}
44. Which of the following is not an advantage of Web-based research?
a. speed
b. low costs
c. almost instantaneous results
d. dynamic, personal approach
e. easy to administer
(d; p. 111; Moderate) {AACSB: Use of IT}
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45. Judy Hammerschmidt regularly conducts online marketing research at work. She has
found that it has several advantages over traditional methods. Which of these is not an
advantage?
a. It is easier for respondents to complete.
b. It is more cost efficient.
c. Report generation turnaround time is much quicker.
d. It is easy to control who responds to surveys.
e. Respondents cannot remain anonymous.
(d; p. 109; Moderate) {AACSB: Use of IT}
46. Marketing researchers usually draw conclusions about large groups of consumers by
studying a small ________ of the total consumer population.
a. group
b. sample
c. population
d. target group
e. audience
(b; p. 111; Easy)
47. What is a major drawback of probability sampling?
a. takes too much time
b. sampling error cannot be measured
c. easiest population from which to obtain info is chosen
d. everyone has an equal chance of selection
e. reliance on the judgment of the researcher
(a; p. 111; Challenging) {AACSB: Analytic Thinking}
48. What are the two main types of research instruments used to collect primary data?
a. surveys and samples
b. questionnaires and mechanical devices
c. focus groups and online databases
d. online panels and experiments
e. personal interviews and online focus groups
(b; p. 111; Moderate)
49. The most common research instrument used is the ________.
a. mechanical device
b. live interviewer
c. questionnaire
d. telephone interviewer
e. moderator
(c; p. 111; Easy)
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50. Which of the following is good advice about creating research questionnaires for
Mark Hammel, research specialist at New Wave Data, to follow?
a. Use care in the wording and ordering of questions.
b. Questions do not have to be arranged in a logical order.
c. Ask difficult questions in the beginning to “weed out” uninterested respondents.
d. Ask personal questions in the middle of the instrument.
e. Avoid eye contact as it may confuse the respondents.
(a; p. 112; Moderate) {AACSB: Communication}
51. Which of the following was not mentioned in your text as a mechanical instrument
used to conduct market research?
a. checkout scanners
b. people meters
c. eye cameras
d. telephones
e. MRI scans
(d; p. 112; Moderate) {AACSB: Use of IT}
52. In marketing research, the ________ phase is generally the most expensive and most
subject to error.
a. exploratory research
b. planning
c. data collection
d. interpreting and reporting the findings
e. data validation
(c; p. 113; Moderate)
53. AMF Research Group must guard against problems during the implementation phase
of marketing research for its clients. Which of the following is not a problem that
should be anticipated during this phase?
a. contacting respondents
b. respondents who refuse to cooperate or give biased answers
c. interviewers who make mistakes or take shortcuts
d. interpreting and reporting the findings
e. primary data that conflict with secondary data
(d; p. 113; Challenging) {AACSB: Reflective Thinking}
54. Typically, customer information is buried deep in separate databases, plans, and
records of many different company functions and departments. To overcome such
problems, which of the following could you try?
a. customer satisfaction measurement
b. more sophisticated software
c. customer relationship management
d. synergetic meetings of the minds
e. less marketing intelligence
(c; p. 114; Moderate) {AACSB: Use of IT}
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55. What is the purpose of a data warehouse?
a. to gather information
b. to integrate information a company already has
c. to interpret data
d. to analyze data
e. to identify and discard old data
(b; p. 115; Moderate) {AACSB: Use of IT}
56. In CRM, findings about customers discovered through ________ techniques often
lead to marketing opportunities.
a. data warehouse
b. data mining
c. customer relationship strategy
d. customer loyalty management
e. value network
(b; p. 115; Moderate) {AACSB: Use of IT}
57. Tommy Baker is in charge of CRM for American Pie Nostalgia. As a result of his
successful efforts in this area, his firm enjoys all of the following except ________.
a. providing higher levels of customer service
b. developing deeper customer relationships
c. creating offers tailored to specific customer requirements
d. understanding competition better
e. understanding how to better build the marketing mix
(d; p. 115; Moderate) {AACSB: Reflective Thinking}
58. Marketing information has no value until it is used to ________.
a. satisfy company objectives
b. make better marketing decisions
c. simplify management’s job
d. please stockholders
e. please customers
(b; p. 115; Easy)
59. What source of marketing information provides ready access to research information,
stored reports, shared work documents, contact information for employees and other
stakeholders, and more?
a. an intranet
b. an extranet
c. the Internet
d. an internal database
e. marketing intelligence
(a; p. 116; Moderate) {AACSB: Use of IT}
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60. The marketing information system is not limited to use by the company it serves. It
may also provide information to ________.
a. the government
b. value-network members
c. various publics
d. competitors
e. none of the above
(b; p. 117; Moderate) {AACSB: Communication}
61. When managers use small convenience samples such as asking customers what they
think or inviting a small group out to lunch to get reactions, they are using ________.
a. informal surveys
b. experiments
c. observation
d. focus groups
e. marketing intelligence
(a; p. 119; Moderate)
62. Small organizations can obtain, with minimal effort, most of which type of data
available to large businesses?
a. census
b. observational
c. secondary
d. primary
e. business
(c; p. 119; Moderate)
63. You have been asked to locate secondary data for your small organization’s research
needs. Which of the following is not a common source for this type of research?
a. the business section at the local library
b. the U.S. Small Business Administration
c. the Internet
d. INS records
e. the local Chamber of Commerce
(d; p. 119; Easy) {AACSB: Communication}
64. A common problem in international marketing research is the availability of
________.
a. primary data
b. research specialists
c. secondary data
d. intelligence limitations
e. consumers willing to answer surveys
(c; p. 120; Challenging)
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65. Because of the scarcity of good secondary data, international researchers often must
collect their own primary data. An initial problem with this collection is developing
good ________.
a. samples
b. research firms
c. rapports with nationals
d. relations with channel members
e. communication methods
(a; p. 120; Moderate)
66. What do many researchers encounter when conducting market research in foreign
countries?
a. Some countries have few telephones, limiting access to respondents.
b. Some countries have poor mail services.
c. Some countries have poor roads that limit personal contacts.
d. Some cultures may not value marketing research.
e. all of the above
(e; p. 121; Easy)
67. Cultural differences, especially those involving language, can add to research costs in
foreign markets and can increase the ________.
a. foreign trade
b. risks of error
c. likelihood of not finding a translator
d. likelihood that a smaller sample could be used
e. response rates
(b; p. 121; Moderate) {AACSB: Multicultural and Diversity}
68. Anna Gregory just completed reading a marketing research report about the top 25
countries that purchase American products. What might the report say about
international research with these countries?
a. It is on the decrease due to high costs.
b. The costs are higher than the benefits.
c. There is a lack of qualified research personnel.
d. Despite the costs of international research, the costs of not doing it are higher.
e. Interpretations of American quality are consistent among different countries.
(d; p. 121; Moderate) {AACSB: Reflective Thinking}
69. According to your text, what are two current major public policy and ethical issues in
marketing research?
a. child pornography and spam
b. intrusions on consumer privacy and misuse of research findings
c. misuse of research findings and spam
d. selling of personal information to other firms and intrusions on consumer privacy
e. ethnography and the misinterpretation of it
(b; p. 121; Moderate) {AACSB: Ethical Reasoning}
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70. Choose the statement that is not a typical consumer concern about intrusion on
consumer privacy.
a. Sophisticated researchers probe our deepest feelings.
b. Marketers use this information to manipulate our buying.
c. Marketers build huge databases full of personal information.
d. Marketers make too many products and services available—it’s confusing.
e. Protecting personal information is increasingly important.
(d; p. 121; Easy) {AACSB: Ethical Reasoning}
71. Behavioral targeting, the practice of ________, is being used by more and more
companies.
a. tracking customers’ activities and rewarding customer loyalty
b. managing customer relationships
c. mining and analyzing data from data warehouses
d. tracking consumers’ online movements and using this information to target ads to
them
e. observing and interacting with consumers in their natural environments
(d; p. 122; Challenging) {AACSB: Use of IT}
72. It has been shown that consumers will gladly provide research information when
researchers provide ________.
a. coupons
b. money
c. value for the exchange
d. prizes
e. rebates
(c; p. 124; Moderate)
73. The best approach for researchers to take to guard consumer privacy includes all of
the following except which one?
a. Ask only for the information needed.
b. Use information responsibly to provide value.
c. Avoid sharing information without the customer’s permission.
d. Sell the information only when it is worth it.
e. Fully explain to the respondents how the information will be used.
(d; p. 124; Easy) {AACSB: Ethical Reasoning}
74. To consumers, research studies may appear to be little more than vehicles for
________.
a. gathering names for resale
b. pitching the sponsor’s products
c. building company image
d. tearing down competition
e. training future salespeople to work with people face-to-face
(b; p. 124; Moderate)
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75. Many major companies have created the position of ________ to address concerns
about the privacy of customers.
a. chief customer loyalty manager
b. chief behavioral analyst
c. chief privacy officer
d. ethics manager
e. data warehouse manager
(c; p. 124; Moderate) {AACSB: Ethical Reasoning}
True/False
76. Most marketers today believe they still lack a sufficient quantity of research data to
make high-quality decisions.
(False; p. 97; Easy)
77. The real value of marketing research and information lies not in quantity but in the
customer insights provided.
(True; p. 97; Easy)
78. Today, marketing managers view research information not only as an input for
making internal decisions but also as an input for external partners.
(True; p. 98; Moderate)
79. An effective MIS assesses information needs, develops needed information, and
distributes the information to help managers use it in decision making.
(True; p. 98; Moderate) {AACSB: Communication}
80. Too much marketing information can be as harmful as too little.
(True; p. 98; Easy)
81. When you glean information from your company’s accounting and sales records
stored in the computer, you are developing an internal database.
(True; p. 99; Moderate) {AACSB: Use of IT}
82. You have just extracted sales and cost data used by the accounting department for
preparing financial statements. Most likely, this information is complete and in
useable form to build an internal marketing database.
(False; p. 100; Challenging) {AACSB: Use of IT}
83. It is important to note that data age quickly, so keeping the database current requires a
major effort.
(True; p. 100; Easy) {AACSB: Use of IT}
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84. Major suppliers and resellers are not important sources of intelligence information for
marketing decision making.
(False; p. 100; Moderate)
85. Your manager asked you to go through three of your competitors’ garbage bins to
gather marketing intelligence from their discarded paperwork. One of them caught
you in the act and has summoned you to court. The judge will most likely rule this to
be an illegal activity and fine you and your company.
(False; p. 100; Challenging) {AACSB: Ethical Reasoning}
86. Good sources of marketing intelligence information include competitors’ annual
reports, business publications, trade show exhibits, press releases, advertisements, and
Web pages.
(True; p. 101; Moderate) {AACSB: Communication}
87. Your firm faces determined marketing intelligence efforts by competitors. Managers
are likely to instruct employees on how to take steps to protect information.
(True; p. 101; Easy)
88. After conducting formal marketing research for your department, you make an oral
presentation with notes to management. You are following normal marketing research
steps.
(False; p. 102; Moderate) {AACSB: Reflective Thinking}
89. Marketing research is the systematic design, collection, analysis, and reporting of data
directly relevant to a specific marketing situation facing an organization.
(True; p. 102; Moderate)
90. Once the research problems and objectives have been defined, researchers must
determine the exact information needed and present it to management.
(False; p. 102; Challenging)
91. Marketing researchers can conduct their own searches of secondary data sources
today by using commercial online databases.
(True; p. 103; Easy)
92. Secondary data provide good starting points and often help to define problems and
research objectives, though most companies must also collect primary data.
(True; p. 105; Moderate)
93. Videoconferencing and Internet technology have changed how focus group
interviews can be observed.
(True; p. 108; Easy) {AACSB: Use of IT}
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94. Focus groups use no interviewer to bias the answers, may produce more honest
answers, and can be used to collect large amounts of data at a low cost per
respondent.
(False; p. 108; Moderate) {AACSB: Communication}
95. You have decided upon a method of collecting research data with flexible
interviewing, whereby trained interviewers can explain difficult questions and explore
issues as the situation requires. Audio-visual aids can also be used. We refer to this as
personal interviewing.
(True; p. 108; Moderate) {AACSB: Communication}
96. The most important issue facing online researchers is the lack of a broad cross section
of consumers who have access to the Internet.
(False; p. 111; Moderate) {AACSB: Use of IT}
97. ABC Interior Designs wants to collect research data through mechanical observation.
The three typical methods are video cameras, checkout scanners, and Internet
surveys.
(False; p. 112; Challenging) {AACSB: Use of IT}
98. Ideally, a sample should be representative so that the researcher can make accurate
estimates of the thoughts and behaviors of the larger population.
(True; p. 111; Easy)
99. You want to calculate confidence limits for sampling error. It would be best to use
nonprobability samples.
(False; p. 111; Challenging)
100. Questionnaires are the most common research instrument.
(True; p. 111; Easy)
101. Open-ended survey questions are particularly useful in exploratory research.
(True; p. 112; Moderate) {AACSB: Communication}
102. The researcher interprets findings, draws conclusions, and reports those conclusions
to management. Ideally, researchers should present important findings that are useful
to the major decisions faced by management to avoid overwhelming them with data.
(True; p. 113; Moderate) {AACSB: Communication}
103. Interpretation of market research data should be the responsibility of the researchers,
not the marketing managers.
(False; p. 114; Moderate)
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104. You have just identified the “touch points” of the 400 best customers in your
database. At this point, you want to manage detailed information about each of them
to maximize customer loyalty. You should use customer relationship management
(CRM).
(True; p. 114; Moderate) {AACSB: Reflective Thinking}
105. Secondary information relevant to international marketing must usually be obtained
from different sources on a country-by-country basis, making the data difficult to
combine or compare.
(True; p. 120; Moderate)
Essay
106. Discuss the makeup and functions of a marketing information system (MIS).
A typical MIS consists of people, equipment, and procedures to gather, sort, analyze,
evaluate, and distribute needed, timely, and accurate information to marketing
decision makers. First, it interacts with information users to assess information needs.
Next, it develops needed information from internal company databases, marketing
intelligence activities, and marketing research. Finally, it helps users to analyze and
use the information to develop customer insights, make marketing decisions, and
manage customer relationships.
(p. 97; Moderate) {AACSB: Communication}
107. Marketers can obtain needed information from internal data, marketing intelligence,
and marketing research. Explain some common sources for each of these.
Internal databases are built upon records of consumer and market information data
sources within the company network. For example, the accounting department
provides records of sales, costs, and cash flows; operations reports on productionrelated issues; sales and marketing provide data on resellers, competitors, buyer
behavior, and the industry; and marketing provides information on customer
transactions, demographics, and buying behavior. Internal data are cheaper sources
that are easy to access. Marketing intelligence is a collection and analysis of publicly
available data about consumers, competitors, and developments in the industry. It can
come from quizzing employees, studying competitors’ ads and annual reports,
analyzing competitors’ products, monitoring Internet buzz, and researching the
Internet. In addition to internal data and marketing intelligence, marketers often need
formal studies of specific situations. To address this need, they conduct marketing
research to collect, analyze, and report secondary and primary data to better form
decisions.
(p. 99; Moderate) {AACSB: Communication}
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108. Describe the basic marketing research process.
The marketing research process involves four steps: defining the problem and
research objectives, developing the plan, implementing the plan, and interpreting and
reporting the findings. Managers must know what is wrong in defining the problem.
Research objectives may be reached through exploratory, descriptive, or causal
research. Next, the information needed and a plan for gathering and presenting is
made. Then, secondary and primary data must be collected to compile and analyze.
Finally, the important information must be presented to management for decision
making.
(p. 102; Moderate) {AACSB: Communication}
109. Briefly compare the three different types of research approaches for gathering
primary data.
The three research approaches for gathering primary data are observations, surveys,
and experiments. Observational research involves watching relevant people, actions,
and situations, usually to glean customer insights that can’t be obtained through direct
questions and answers. Observations can reveal information that people are unwilling
or unable to provide in surveys or experiments. Survey research is very flexible, as it
can be used to obtain many different kinds of information in many different
situations. Mail, telephone, and online surveys have relatively low costs in
comparison to observational research. Surveys are also better suited than observations
for identifying people’s attitudes and feelings; surveys are best suited for gathering
descriptive information. Experimental research is best suited for gathering causal
information; this type of research is most appropriate for determining cause-andeffect relationships.
(p. 105; Moderate) {ACSB: Analytic Thinking}
110. Provide the advantages/benefits of each of the contact methods.
Mail questionnaires can be used to collect large amounts of information at a low cost
per respondent. Respondents may give more honest answers to more questions than to
an unknown interviewer in person or on the phone. Also, no interviewer is involved
to bias the answers. Telephone interviewing is one of the best methods for gathering
information quickly and provides great flexibility. Interviewers can explain difficult
questions, skip questions, or probe on other questions. Rates of response tend to be
higher than mail methods. Personal and group interviews are flexible and allow
interviewers to guide respondents and explore issues as they evolve. Visual aids can
be used, products can be demonstrated, and reactions and behaviors can be observed.
Computer-assisted interviewing aids in eliminating interviewer bias. Online methods
allow the interviewee to be more honest, the costs are greatly reduced, the response
rate is higher, and reports come back faster.
(p. 107; Challenging) {AACSB: Analytic Thinking}
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111. Compare and contrast closed-end questions and open-end questions for gathering
data.
Closed-end questions, which include all possible answers, make it easier for
respondents to choose among relevant answers. They are also easier for the researcher
to interpret and tabulate. Open-end questions allow respondents to answer in their
own words and as such do not limit their choices. Open-ended questions are more
difficult to interpret and tabulate, but they are particularly useful in exploratory
research.
(p. 111; Easy) {AACSB: Analytic Thinking}
112. What would a researcher need to decide when designing a sample?
First, it is imperative to determine who is to be surveyed. Next, a researcher must
determine the sample size by deciding how many people need to be surveyed. Third,
the sampling procedure should be chosen to know how the respondents should be
chosen.
(p. 111; Moderate)
113. How can a company overcome the problem of gathering internal data for research
purposes when the data is usually scattered widely across the organization?
Many companies are using customer relationship management (CRM). CRM offers
the benefits of managing detailed information about individual customers and
carefully managing customer “touch points” in order to maximize customer loyalty.
By using sophisticated software and analytical tools, information about customers can
be integrated from all sources and analyzed in depth, and the results can be applied to
build stronger customer relationships. CRM integrates everything that a company’s
sales, service, and marketing teams know about individual customers to provide a
360-degree view of the customer relationship. CRM involves creating a data
warehouse that can be mined for useful insights about customers.
(p. 114; Challenging) {AACSB: Use of IT}
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114. Discuss several ways in which smaller organizations can use marketing research
techniques at little or no expense.
Small organizations can use the same marketing research process as larger firms, as
well as many of the same methods, such as secondary data collection, observation,
surveys, and experiments. There are many sources of free secondary data on the Web,
and small firms also have access to special help collecting data from chambers of
commerce, government agencies, and other organizations. Managers of small
organizations can use observation to collect data. For example, they can monitor
competitors’ advertisements, evaluate their own customer mix, and regularly visit
their competitions’ places of business. Informal surveys with small convenience
samples are another tool that smaller organizations can use. Finally, managers of
smaller organizations can conduct simple experiments by altering one aspect of a
marketing strategy and analyzing the results. As with larger firms, smaller
organizations must conduct research systematically for the results to be valid and
useful.
(p. 118; Moderate) {AACSB: Communication}
115.
Explain the common problems that international marketing researchers encounter.
International researchers deal with less homogeneous markets in and among
countries. The markets often vary greatly in their levels of economic development,
their cultures and customers, and their buying patterns. Good secondary data are
difficult to find in many foreign markets. More time and expense is involved in
gathering primary data. In addition, choosing representative samples and finding
methods of contacting participants can be a formidable task. Cultural and language
differences can present obstacles in interpreting the data and drawing realistic
conclusions. Consumers’ attitudes in other countries may hinder the process of
collection.
(p. 120; Challenging) {AACSB: Multicultural and Diversity}
APPLICATION CONTENT: Multiple-Choice Questions
116. Diana Dion is currently researching data sources from within her company to
make marketing decisions. Diana is making use of ________ databases.
a. external
b. current
c. historical
d. internal
e. foreign
(d; p. 99; Easy) {AACSB: Reflective Thinking}
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117. Your marketing department is attempting to improve strategic decision making, track
competitors’ actions, and provide early warning of opportunities and threats. Your
department would do well to use ________.
a. internal databases
b. external databases
c. marketing intelligence
d. the Internet
e. company reports only
(c; p. 100; Challenging) {AACSB: Reflective Thinking}
118. Harvard University is systematically designing, collecting, analyzing, and reporting
data in order to market its programs to minority students. What do we call this?
a. promotion
b. self-study
c. marketing research
d. cost-benefit analysis
e. Identifying the target market
(c; p. 102; Challenging) {AACSB: Reflective Thinking}
119. Patti Lovelace is making a presentation to the owners of her company. She is trying to
convince them to conduct some current marketing research. Which of the following
would she not emphasize as a benefit or selling point of marketing research?
a. assessing market potential and market share
b. understanding customer satisfaction and purchase behavior
c. measuring the effectiveness of pricing and accounting
d. measuring the effectiveness of distribution and promotion activities
e. understanding customer motivation
(c; p. 102; Challenging) {AACSB: Analytic Thinking}
120. You are about to test hypotheses about decreasing sales in certain markets and their
causes. You are involved in what type of research?
a. exploratory
b. descriptive
c. causal
d. focus group
e. ethnographic
(c; p. 102; Easy) {AACSB: Reflective Thinking}
121. Which type of research would be best suited for identifying which demographic
groups prefer diet soft drinks and why they have this preference?
a. exploratory research
b. survey research
c. ethnographic research
d. experimental research
e. descriptive research
(e; p. 102; Challenging) {AACSB: Reflective Thinking}
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122. Nathan Zabalas owns a regional chain of drug stores. Before expanding nationwide,
Nathan is conducting marketing research to determine the best options for opening
new stores. He plans to start by collecting secondary data. Which of the following is
not a source of secondary data that Nathan might use?
a. Yankelovich’s Monitor
b. commercial online databases
c. online questionnaires
d. Web search engines
e. local chambers of commerce
(c; p. 103; Moderate) {Use of IT}
123. Wal-Mart sends a trained observer to watch and interact with customers as they shop
in a Wal-Mart store. This is an example of ________.
a. observational research
b. survey research
c. ethnographic research
d. experimental research
e. descriptive research
(c; p. 106; Challenging) {AACSB: Reflective Thinking}
124. Carls Jr. comes out with a new hamburger and releases it in two different cities with
two different price points. This is an example of ________.
a. observational research
b. survey research
c. ethnographic research
d. experimental research
e. descriptive research
(d; p. 107; Moderate) {AACSB: Reflective Thinking}
125. Maryann Rose is conducting research to determine consumers’ personal grooming
habits. Because of the personal nature of the survey questions about this topic,
Maryann wants to select the contact method that is most likely to encourage
respondents to answer honestly. Which contact method should Maryann select?
a. mail questionnaires
b. telephone interviews
c. individual interviews
d. focus group interviews
e. online focus groups
(a; p. 107; Moderate) {AACSB: Reflective Thinking}
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Chapter 4: Managing Marketing Information to Gain Customer Insights
126. Tasoula Jeannopoulos has a limited budget for the market research she needs to
conduct; however, the sample size for her research is quite large. Which of the
following methods of contact would provide Tasoula with the most cost-effective
way to reach a large sample of potential customers?
a. telephone surveys
b. personal interviews
c. Internet surveys
d. mail surveys
e. focus group interviews
(c; p. 109; Moderate) {AACSB: Reflective Thinking}
127. You want to find out whether Americans between 21 and 40 years of age tend to vote
Democratic and whether Americans between 41 and 70 tend to vote Republican. You
will most likely use ________ to collect your data.
a. observation
b. mechanical devices
c. a sample
d. people meters
e. checkout scanners
(c; p. 111; Moderate) {AACSB: Reflective Thinking}
128. You have decided to use only closed-end questions on your survey. Which of the
following questions would not be found on your survey?
a. Do you like chocolate?
b. What is your gender?
c. Do you work full- or part-time?
d. Why don’t you like your teacher?
e. In what month do you plant your garden?
(d; p. 111; Moderate) {AACSB: Reflective Thinking}
129. Loft Industries sells roof trusses to contractors and builders and would like to conduct
research to determine how customers assess customer service. Which of the following
research instruments would be best for this firm?
a. people meters
b. checkout scanners
c. questionnaires
d. cameras
e. BlueEyes technology
(Answer: c; p. 111; Challenging) {AACSB: Analytic Thinking}
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130. ABC Company has decided to use mail questionnaires to collect data. Management
recognizes this method has all the following advantages except which one?
a. low cost per respondent
b. may encourage more honest answers
c. has an average response rate
d. no interview to bias respondents’ answers
e. can collect large amounts of information
(c; p. 107; Challenging) {AACSB: Reflective Thinking}
131. Michael Quinones is a customer service agent for a national car rental business. He
has access to the company’s intranet, which provides performance reports, shared
work documents, contact information, and detailed information about customers.
Which of the following is this access most likely to enable Michael to do during
interactions with customers?
a. analyze primary data
b. use data mining techniques
c. share information with value-network members
d. reward customer loyalty with an upgrade or discount
e. evaluate marketing intelligence
(d; p. 116; Moderate) {AACSB: Analytic Thinking}
132. As a small business consultant, you recommend to your clients that they use no-cost
methods of observation to gather market research. Which of the following are you not
likely to recommend your clients do?
a. Observe vehicle and pedestrian traffic.
b. Monitor competitors’ advertising from local media.
c. Evaluate their customer mix—how many and what kind of customers.
d. Hire additional staff to observe extensively.
e. Visit and socialize with competitors.
(d; p. 119; Easy) {AACSB: Reflective Thinking}
133. Juanita Petino operates a dress shop in a suburban mall. Her research budget is very
small, and thus she utilizes low-cost or no-cost methods to gather research data. One
method that works very well for her is to change the themes in her local newspaper
and radio advertising and watch the result. Juanita is using ________ to gather data
for marketing decisions.
a. informal surveys
b. experiments
c. guess work
d. logic-directed research
e. secondary sources
(b; p. 119; Moderate) {AACSB: Reflective Thinking}
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Chapter 4: Managing Marketing Information to Gain Customer Insights
134. For a small business manager deciding where to relocate within the city, relevant
research will least likely include ________.
a. traffic-flow patterns in specific areas
b. informal surveys of customers
c. past sales data
d. competitors’ advertisements
e. ways to repackage the company’s products
(e; p. 119; Easy) {AACSB: Reflective Thinking}
135. Marialba Hooper is conducting marketing research for a company that is investigating
the possibility of entering multiple international markets. As Marialba plans her
research in 30 different countries, upon which of the following is she least likely to
rely?
a. free secondary data
b. translators
c. primary data collected for the purpose of her research
d. the same process as domestic researchers
e. personal interviews
(a; p. 120; Moderate) {AACSB: Reflective Thinking}
Short Answer
136. Briefly explain the following statement: “Too much information can be as harmful as
too little.”
Too much information may prohibit marketers from clearly applying the
data/information to their objectives, while excess information may lead marketers to
lose sight of their objectives.
(p. 98; Moderate) {AACSB: Analytic Thinking}
137. You have decided to run for a local political office. You want to hand-deliver
campaign materials in person to the homes of voters. Explain how marketing
intelligence plays a role in this scenario.
You must have a system for knowing where the voters live; merely knocking on
every door would be inefficient. You need a list of registered voters and their
addresses from which you can plan your visits.
(p. 100; Challenging) {AACSB: Analytic Thinking}
138. When do marketers need marketing research?
Marketing research becomes important when marketing intelligence cannot provide
the detailed information needed for a specific situation.
(p. 101; Easy) {AACSB: Analytic Thinking}
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139. Explain why the objective of exploratory research, descriptive research, or causal
research would be most important when attempting to determine whether shoppers in
the Midwest are more sensitive to a price increase for laundry soap than shoppers on
the East Coast.
Causal research would be most important because it investigates cause-and-effect
relationships; causal research would allow the researcher to test a hypothesis about
price sensitivity and compare the differences in the two geographic regions.
(p. 102; Challenging) {AACSB: Reflective Thinking}
140. Why is it important for the statement of the problem and the research objectives to
guide the entire research process?
The specific nature of the problem and the research objectives determine which type
of research, contact methods, sampling plans, and instruments should be used;
without a focus of a specific problem and objectives, the marketing research process
would not result in relevant data.
(p. 102; Moderate) {AACSB: Analytic Thinking}
141. Sales have dropped at XYZ Corporation. Give two specific pieces of information for
which the research might call.
The researcher will likely want to find out whether the number of competitors has
increased and/or whether current competitors have changed their marketing strategies.
(p. 102; Challenging) {AACSB: Analytic Thinking}
142. Why is it important for a research plan to be presented as a written proposal?
A research plan typically involves many components such as objectives, information
to be obtained, how results will be used, and costs; a written proposal decreases the
likelihood of confusion over any one of these components. This is particularly
important when several people are involved in a large or complex research project.
(p. 103; Moderate) {AACSB: Analytic Thinking}
143. You want to determine whether no-smoking policies have impacted employee morale
in the United States in the past few years. Are any secondary data likely available?
Why?
Yes, there are likely to be several studies conducted from which the researcher could
extract information because many companies have implemented no-smoking policies
in recent years.
(p. 103; Challenging) {AACSB: Analytic Thinking}
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Chapter 4: Managing Marketing Information to Gain Customer Insights
144. You want to determine whether no-smoking policies have impacted employee morale
in the United States among workers in companies that employ fewer than 50 workers
in Fort Wayne, Indiana. Are any secondary data likely available? Why?
Because the data sought are so specific, there will likely not be much, if any, data that
specifically answer the question.
(p. 103; Challenging) {AACSB: Analytic Thinking}
145. Give two ways that a researcher should evaluate information in on online databases.
The researcher should evaluate whether the data are relevant, current, unbiased, and
accurately presented.
(p. 105; Easy) {AACSB: Reflective Thinking}
146. Give an example of primary data that could effectively be collected via observation.
Answers will vary. The purchase of lottery tickets or diet soft drinks, for example,
among genders or age groups could be observed with little error.
(p. 105; Moderate) {AACSB: Reflective Thinking}
147. You are trying to determine whether retired people drink more coffee at McDonald’s
during lunch than they do during dinner. Why is observation research not effective in
this scenario?
It is difficult to determine, just by looking, whether people are retired.
(p. 105; Moderate) {AACSB: Analytic Thinking}
148. How might survey research be a better approach than observation research when
attempting to assess customer satisfaction?
Survey research is more effective than observation in measuring customer satisfaction
because observations of smiling customers or armloads of merchandise, for example,
do not necessarily indicate customer satisfaction.
(p. 106; Moderate) {AACSB: Analytic Thinking}
149. A marketer of frozen dinners has decided to collect consumer feedback via a focus
group interview. How might the marketer know for certain whether peas or green
beans should be included with the turkey entrée?
The group might be given a prepared meal with both vegetable options. Afterward,
the marketer can obtain fresh feedback from the respondents or through observation.
The marketer could assess respondents’ reactions and facial expressions while they
eat provided meals.
(p. 108; Challenging) {AACSB: Analytic Thinking}
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150. A researcher is collecting data in an airport. Why might a sample be most
appropriate?
People in an airport are often in a hurry; not everyone will want to participate in
providing data. Therefore, the researcher may be satisfied with collecting data from
whoever is willing to provide it.
(p. 111; Easy) {AACSB: Analytic Thinking}
151. How would you design the sample to determine whether retired people drink more
coffee at McDonald’s during lunch than they do during dinner? Explain.
The sample must include respondents based on work status. From there, the
researcher can select a random sample from among the retired respondents.
(p. 111; Moderate) {AACSB: Analytic Thinking}
152. Give an example of a closed-end question.
Closed-end questions force respondents to answer with a limited number of options.
Examples include: What is your gender? Do you prefer McDonald’s to Burger King?
Do you like spinach?
(p. 111; Easy) {AACSB: Reflective Thinking}
153. Explain why it’s important for both the researcher and the marketing manager to
interpret the findings of market research.
Both a marketing manager and a researcher bring important points of view to the task:
a marketing manager is an expert in the problem and the decisions that must be made,
but also may be biased about the results; a researcher is an expert in statistics.
Because findings can be interpreted in many ways, discussions between a researcher
and marketing manager will lead to the most appropriate interpretation for the given
situation.
(p. 114; Moderate) {AACSB: Communication}
154. Why is it difficult to obtain relevant and reliable secondary data when conducting
international marketing research?
Unlike the United States, many countries have no or almost no research services; in
addition, most international research services operate in only a handful of countries.
(p. 120; Moderate) {AACSB: Communication}
155. Why has consumer resentment toward marketing research been growing?
More individuals are wary of invasion of privacy and want to protect personal
information; many also simply resent the intrusion of marketing research and dislike
surveys that are too long or too personal.
(p. 123; Moderate) {AACSB: Analytic Thinking}
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Scenario
Jason West, owner of A-1 Cleaning, began his enterprise in 2001. Jason’s primary
focus had been on office cleaning for large corporations. But in recent months Jason has
seen a decline in demand for office cleaning. Surprisingly, the competitive environment
appears relatively stable with no new competitors. However, Jason understands that
office cleaning is a high-frequency service that is usually performed daily; therefore,
competitors must be doing something to attract his customers. Building a competitive
advantage seems to be the only option to offset competition. But as Jason pondered his
dilemma, he realized that he needed to better understand how customers assess service
quality and what they are looking for in a superior cleaning service, prior to building his
competitive advantage.
Jason developed a research plan. First, he gathered competitor information—
primarily through pamphlets, but also from a few phone calls—to find out exactly what
competitors offer in their cleaning packages. In addition, Jason obtained from the area
Chamber of Commerce an updated list of local corporations to which he would send a
short survey.
Though the list of corporations contained 141 local company names, Jason chose
to survey 75 of them. To better understand customer service expectations between both
small and large corporations, Jason divided his surveys into two categories. The survey
questions were designed to extract specific data from respondents with regard to service
quality expectations in correlation to service frequency and price.
Jason awaited the results. Though his primary focus had been on large
corporations, he was flexible and would aim his efforts differently if needed.
156. What type(s) of marketing intelligence, if any, did Jason West use in this scenario?
Jason obtained intelligence information through competitors’ pamphlets and through
a few phone calls made directly to the competitors.
(p.100; Moderate) {AACSB: Reflective Thinking}
157. How did Jason know he needed marketing research?
Jason needed customer and market insights for his specific situation. Jason felt that he
did not fully know what makes customers happy; therefore, he wanted to become
better aware of what customers look for in a cleaning service and how those
customers measure service quality. In addition, he wanted to find out whether he
should continue to focus only on large corporations or, perhaps, change his focus to
include smaller firms.
(p. 101; Challenging) {AACSB: Analytic Thinking}
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158. In what way(s) did Jason’s project require descriptive data?
The primary descriptive data being sought in Jason’s project included the customers’
attitudes toward service quality and their expectations from cleaning service
providers.
(p. 102; Moderate) {AACSB: Reflective Thinking}
159. In what way(s) did Jason’s project require causal research?
Jason used his survey to determine whether large corporations and small corporations
utilize cleaning services differently; in addition, he used his survey to find out
whether buyers of cleaning services perceive service quality differently.
(p. 102; Challenging) {AACSB: Reflective Thinking}
160. What type(s) of secondary data did Jason collect?
The list of local companies provided by the area Chamber of Commerce constitutes a
major source of secondary data in this scenario.
(p. 103; Easy) {AACSB: Reflective Thinking}
161. Could Jason have collected observational research effectively? Explain.
Collecting observational data within a business environment may have been difficult
from the start, particularly since Jason was interested in attitudes and motives.
Individuals’ perceptions of service quality and customer satisfaction could be more
effectively measured through survey or experimental research.
(p. 106; Moderate) {AACSB: Analytic Thinking}
162. What types of contact methods did Jason utilize in this scenario?
He utilized the telephone to obtain competitor information early in the scenario.
Further, he relied heavily on his mailed survey in order to get the respondents’
feelings about service quality.
(p. 107; Easy) {AACSB: Reflective Thinking}
163. Why might Jason have purposefully avoided data collected via online research?
Jason wanted to control who was included in the sample; online data collection does
not always guarantee that. Online surveys might work well in reaching hard-to-reach
respondents; but, in this scenario, Jason knew exactly whom he had to contact and
where he could contact them. Because Jason was concerned with a local market, he
may have feared other samples would not be relevant.
(p. 111; Challenging) {AACSB: Analytic Thinking}
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Chapter 4: Managing Marketing Information to Gain Customer Insights
164. Of the 141 companies on the list, Jason chose to survey only 75 of them. How might
he have chosen this sample?
Though the case does not specify, Jason may have selected the 75 companies just
based on convenience. Nonetheless, he obviously selected those 75 companies
because he felt assured that they accurately reflected the typical type of businesses
that he would want to target with his cleaning service.
(p. 111; Challenging) {AACSB: Analytic Thinking}
165. How might Jason assure ethical conduct toward his respondents?
Jason might have included a disclosure statement on his survey, indicating that all
information would be kept confidential, that the project was not a sales gimmick, that
he was not building a database to be provided to any outside party, and that
respondents could call him directly if any further questions arose.
(p. 124; Moderate) {AACSB: Analytic Thinking}
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